Somerset chief urges permit fee hikes

Fire Chief Scott Jepson said it's time to raise permit and ambulance fees to keep up with outlining communities and help offset anticipated revenue shortages.

Michael Holtzman Herald News Staff Reporter @MDHoltzman

SOMERSET — Fire Chief Scott Jepson said it's time to raise permit and ambulance fees to keep up with outlining communities and help offset anticipated revenue shortages.

"As you can see, we are the lowest along with Swansea," Jepson told selectmen about permit charges during a discussion last week of both fee arrangements.

He issued a chart with two dozen permit areas required by state law and code requirements from eight other area communities: Swansea, Westport, Freetown, Fall River, Dartmouth, Taunton, Seekonk and Dighton.

The town hasn't increased its permit fees in a decade, the last time in 2004, Jepson said.

In most cases, he proposed increasing what were almost universally $25 fees to $50 in categories ranging from blasting to liquefied propane gas to storage of combustibles to tank removals and installations.

With the exception of Swansea, the other communities mostly are charging $50 and in scattered cases $100 and more for given permits.

By targeting increased "user fees," the method "doesn't just dump it on the taxpayer," Jepson said.

He began the presentation by stating he'd discussed the proposed increases with Town Administrator Dennis Luttrell as their effort to generate more revenue and offset cuts sought by all municipal and school departments.

His proposal for ambulance fee increases would go into effect right away after being approved by selectmen.

Basically, the rate increase would be based upon what Medicare pays, would affect private insurance coverage but not the co-pays and not affect those patients that use Medicare, Jepson said.

On average, about 40 percent of those needing ambulance service are covered by Medicare, he said.

The variety of charges based on paramedic services needed would increase from 125 percent of the rate Medicare pays to 150 percent. That's the middle ground of what other communities generally charge and some charge 200 percent, Jepson said.

It's based on rate reviews by Comstar, the town's ambulance billing service.

"We're still far from being the highest," Jepson said.

As an example of the proposed increases, a basic life support emergency rate that Medicare allows in 2014 of $372.31 has a current rate of $828.30 for private insurance, and that would increase to $930.78 under the proposed fee schedule.

Advanced life support emergency rates, currently $639.91 paid by Medicare and $1,432.65 charged to private insurance, would increase to $1,105.30.

"This does not affect Medicare patients," Jepson stressed, while the remaining 60 percent of the town with private insurance "will not see any change in their bill."

The Board of Selectmen agreed to take both the ambulance and permit increase proposals under advisement and have placed it on Wednesday night's agenda for further discussion and possible approval.

Selectmen had few questions, although Selectman Scott Lebeau said he wanted to be sure that increased trash bin fees don't affect someone building a house or doing a small job.

Jepson said on Friday he forwarded follow-up information on trash bins and compactors showing state law affects permits of larger commercial companies.

He recommends that fee increase from $25 to $50.

The increases he proposes will have indirect benefits on the fire department, he said.

Permit revenues flow into the municipal general fund.

On the ambulance side, fees generated pay the salaries of 10 of the department's 30 firefighters/paramedics, Jepson said.

The other 20 firefighters, along with department expenses, are derived from the fire budget. This year the amount is $1,523,423.

For fiscal 2015, Jepson said, "I did submit a reduced budget." He's discussed the new budget with Luttrell. Since figures have not been disclosed to selectmen, Jepson said he was not ready to discuss the cuts he proposed.

The new budget would include $247,121 in salary increases for four years through fiscal 2013, ending June 30.

The 6 percent in raises over four years would be funded at the next town meeting.

It would mean a base firefighter's pay would increase to $902 from $757 weekly, and a lieutenant from $1,022 to $1,084.